Lanxess adding compounding capacity in North Carolina

By Frank Esposito
Senior Staff Reporter

Published: August 13, 2014 1:00 pm ET
Updated: August 13, 2014 1:03 pm ET

Image By: Lanxess Lanxess plant in Gastonia, N.C.

Related to this story

Topics Materials, Materials Suppliers

Materials maker Lanxess AG will spend $15 million to install a second compounding line at its plant in Gastonia, N.C.

The line will double capacity at the site, bringing its total to almost 90 million pounds, officials with Cologne, Germany-based Lanxess said in an Aug. 13 news release. The plant opened in September 2012 and makes compounds based on nylon and polybutylene terephthalate, primarily for the automotive market.

“The U.S. is the leading market for high-tech plastics, with the automotive industry at the forefront,” laxness executive Fleming Bjoernslev said in the release. “Automotive industry sales are at their highest level in almost 10 years, and by adding the second line in Gastonia, we are underlining our ongoing commitment to our customers.”

Bjoernslev serves as president and CEO of Lanxess Corp., Lanxess AG’s Pittsburgh-based North American business unit. Work on the new line is expected to begin in the second half of 2014, with production set for early 2016.

The Gastonia expansion announcement continues an unusual year for Lanxess during which the firm has opened a new nylon resin plant in Belgium and a new compounding plant in Brazil while also announcing a realignment that will eliminate 1,000 jobs worldwide and create $135 million in savings by 2015.

In May, CEO Matthias Zachert said that Lanxess “must become significantly more competitive and profitable again.” The firm’s sales for full-year 2013 fell 9 percent to $11.5 billion. That decline included a drop of about 13 percent in sales of performance polymers, including nylon.

Lanxess sales have continued to decline in the first half of 2014, falling 4 percent to less than $5.3 billion. The firm’s performance polymers segment saw first-half sales fall 9 percent to less than $2.8 billion.

Performance polymers was the largest of Lanxess’ three operating segments in the first half, generating almost 52 percent of total sales.


Comments

Lanxess adding compounding capacity in North Carolina

By Frank Esposito
Senior Staff Reporter

Published: August 13, 2014 1:00 pm ET
Updated: August 13, 2014 1:03 pm ET

Post Your Comments


Back to story


More stories

Image

A. Schulman reports growth in sales and profit

October 22, 2014 7:58 pm ET

Executives with materials maker A. Schulman Inc. have to be smiling after seeing full results for the firm's 2014 fiscal year.    More

Image

PolyOne takes on LED lighting

October 22, 2014 4:23 pm ET

PolyOne Corp. is making inroads into LED lighting applications with its Therma-Tech-brand material technology.    More

Image

Bergen International adds manufacturing space, extrusion line

October 22, 2014 3:42 pm ET

Chemical foaming agent manufacturer Bergen International LLC recently doubled its manufacturing capacity, added an extrusion line and laboratory...    More

Image

DuPont materials taking more ground in auto, medical, electronics

October 22, 2014 2:41 pm ET

Materials made by DuPont Co. are making inroads with products ranging from auto coolant pipes to circuit breakers to surgical devices.    More

Image

Ford's final ACH plant, injection molder of HVAC systems, to close

October 22, 2014 1:58 pm ET

Ford Motor Co. will shed the last line of business in 9-year-old Automotive Component Holdings LLC by December when ACH closes its Plymouth, Mich., cl...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events